Entertainment, Transformed.

Presented by Group 5
Rishi Jain

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Mohit Patil

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Venkat Pogaru

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Priyesh Saurabh

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Chirag Shah

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Arjun Padmanabhan

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Digital Video -A growing

phenomenon
Factors Demand for flexibility in terms of
timing, volume and place of content
for
growth consumption
Younger audiences accustomed to
time shifted and non-linear video
Declining prices of smartphones and
tablets along with rise in large screen
smartphones
Increasing broadband and 3G
penetration and gradually increasing
streaming speeds

Comparison of broadband speeds

Roadblocks
Access to
high speed
internet
connections
Expensive
data
charges

Comparison of video usage

Digital Video An overview

YouTube rules the digital video
space in India
Largest share of online
video
India expected to become
second largest market in
2015
Rolled out a paid
subscription service called
YouTube Music Key
I. Monthly subscription
at INR 9.99
II. Listen to music in
background on
mobile and desktop
III. Download videos
IV. Skip ads

Waiting in the wings

Ronnie Screwvala, former

CEO UTV Group and B
Saikumar, former Group CEO
Network 18, launched a
venture offering on demand
video, with investments of
INR1.5 billion

The way
forward

Amazon plans to launch

music, movie and video
streaming in 2015

Netflix to introduce
its subscription based
video streaming in
India

Ogle, s service for

English content, backed
by Pritish Nandy in beta
testing mode since Sep
2014

Reliance Jio to launch

an on-demand content
platform along with
its 4G launch

Content
differentiation

Ease of content
discovery

Tailoring content
for customer
segments using
analytics

Ease of payment

Comparison between VoD in India

and VoD abroad
Experience
In this respect global players are way ahead of local players
Local players need to have strong strategy, heavy advertising and other PR skills to create
market presence
Technology
VOD requires high end technology and network
Needs to be delivered without too much buffering and pixilation
High speed internet or broadband connection or Wi-Fi which is still evolving in India as
compared to US or Europe
Market

Consumer awareness about new products, services and brands is growing in India, but at a
much slower rate as compared to the market aboard
Video on Demand is fragmented in India
VoD in India is targeted more toward middle class and upper-middle class consumers, which
is not the case in other countries

Subscription models offered

Subscription Video on Demand (SVOD)
Viewers or consumers are charged a monthly fee that allows them to have access to the digital content of
their choice. In India, we only have SVOD services offered by players like Airtel, Tata Sky, Qwik
Entertainment etc. Global players include Netflix, Lovefilm

Transactional Video on Demand (TVOD)

Viewers or Consumers pay for individual video on demand program. Its pay per view. This service is not yet
offered by our local brands. Global brands include Voodoo, iTunes.

Advert-supported video on demand (AVOD)

Viewers are allowed to watch content for free; however they must watch advertisements at various points
throughout the film. A portion of the ad revenue is then returned to the content provider. Global players
include YouTube, Hulu(US).

Competitive Landscape for digital

video in India

Competitive Landscape for digital

video in India

Competitive Landscape for digital

video in India

Monetization of Digital Video

Revenues from digital video is still very small but the industry is not
discounting the future potential and is making investments

Social Media provides a multiplier effect for video ads since video ads
if done right can go viral

A key risk is that customers are becoming accustomed to free content

and changing the habits will be tricky

Sports can be a key driver for premium subscription. Starsports.coms

paid streaming for ICC WC 2015 for Rs 120 had significant traction

Low credit card penetration, fear of using internet banking and lack of
experience in using e-wallet is impending the growth of digital video
revenues

Rising Indian Digital Content

Indian video content providers has increased

drastically in the past few years
Fictional and non- fictional content
Prominent content providers
AIB
TVF
Being Indian
Pretentious reviews
East India Comedy
TVF has separated itself from the pack
TVFPlay.com started
Acts as an online channel
New content as well as old content from TVF
Old comedy shows and movies also available
Tie up with Uber

BLOCKBUSTER
Key Success Factors

3m US
customers
per day
Expanding
in UK,
Europe,
Australia

Adopting & Driving Innovation

Operations
in 24 other
countries

Key Figures

5,000+
Retail
Outlets

Peak value
= $5bn
60,000+
Employees

Retail Product Display

Inventory Software
Using Technology to Speed Transactions
Store Opening Times 10am Midnight
Basically *everything* was new!

Low price
Retail
sales
Mail order
Rental

Satellite

Video on
Demand

Cable TV

Low price
Rentals

AND THEN
Blockbuster filed for bankruptcy in 2010

NETFLIX
Netflix did not invent a new technology - rather they
invented a new business model

Flat Fixed
Monthly
Fee

No
Handling
Fees

No Late
Fees

1998: Sales jumped

from $1m to $5m
Unlimited
Rentals

Key
Features

2002: $500m sales &

1m subscribers
2005: $1bn

No Return
Due
Dates

2006: 5m subscribers
2010: 14m
subscribers

THE SUCCESS STORY

65 million
members

50 countries

100 million
hours per day

Original series,
documentaries,
feature films

Unlimited,
Anytime,
anywhere

No
Commercials

THE COMPETITION

TRANSFORMATION OF THE MUSIC

INDUSTRY

CURRENT SCENARIO
Share of Music Revenue based on sources of
distribution
Caller Ring Back
Tunes (CRBT)

Music
Downloads

Streaming/Su
bscription

Major Digital Music Business Models

FUTURE CHALLENGES & PROSPECTS

Piracy and Licensing Bottlenecks

Labels like T-series, Rajashri, Aditya
Music have eased up their licensing
policies.

Still struggling to chalk out a scalable

model. Whereby users would find it
valuable to pay for listening to music
online.

Need to find a unique proposition